China faces problems of both an easy-money-induced bubble, and a corrupt regulatory regime: Besides the State-owned Enterprise-based economic system, what we should worry more about is how the Keynesian and crony system hurts small and private businesses in China, who are driving the economy of this country. Compared with the SOEs, and the businessmen who are the close allies of some influential politicians, it is harder for ordinary entrepreneurs who are running small businesses to get loans. Moreover, the recent market squeeze makes it harder for Chinese small business to survive. These entrepreneurs are not only facing an unfriendly bank credit situation, … Continue reading The Chinese Economy’s Fatal Flaws